Etsy CEO Josh Silverman has made a statement recently confirming that he does not think that Bitcoin is a viable form of payment. The statement came from a conversation that Josh had with Yahoo Finance Live.
In addition to not accepting Bitcoin as a form of payment on the popular global marketplace, Josh also confirmed the company will not be holding any Bitcoin on their books either; a further confirmation on how Josh feels about the cryptocurrency.
It’s not all bad news though, although on the surface this seems like a shake of the head from a prominent CEO, it is actually an astute observation from Josh that has led to his apprehension when it comes to Bitcoin.
In the Yahoo interview, Josh commented:
I don’t think it’s quite ready yet to be tender… You need a lot of people holding it before it is actually useful as a form of tender. Never say never, but I don’t think 2021 is the year when we would prioritize that.Etsy CEO Josh Silverman
This is a very valid point; although many people, including some of the most successful entrepreneurs in the world, see a bright future in Bitcoin and other cryptocurrencies, Josh is taking a more logical approach. Josh is clearly looking at Bitcoin from a business and economic point of view, rather than from an investment point of view.
He is certainly correct in what he is saying; at the moment a sizable portion of crypto investors are doing so because they believe it will be successful – this is essentially an investment in the technology and its future success.
In addition, many of the people around the world that are using Bitcoin are doing so as an intermediary between other currencies – almost like a money transfer medium, rather than a true currency.
What Josh is saying, and rightly so, is that for Bitcoin to be truly successful – and to be deemed as a currency in its own right, more people need to hold Bitcoin rather than just dipping their toes in when they want to send or receive it. With a traditional FIAT currency, you would typically hold a balance with your bank, or on an online payment processor such as PayPal. Once people start to treat Bitcoin in a similar fashion, that is when it will likely take off.
At that time, it would be a sensible choice for companies such as Etsy to accept it as a form of payment. The reason; simply because once people are holding it, the price fluctuations are likely to reduce and it will become a stable and viable currency.